University of the People Written Assignment- Week 4David A. AvilesBUS 5112 Marketing ManagementDr.
LaneDecember 13, 2017 Table of Contents Introduction. 3 Smartphone Apps Growth Stage. 3 Cola Maturity Stage.
3 Pricing, Advertising, and Distribution Channels Different for. 5 Conclusion. 5 References. 6 IntroductionThere are various stages to a products life cycle. Below we will explore and compare the maturity stage of Cola in contrast to the growth stage of Smartphone Apps. Cola Maturity StageOnce a product enters the maturity stage, a company must focus on maintaining it’s position in the market.
Its during this period, a product can face many challenges from competition but also face challenges from the growing needs of consumers. Example: Coca Cola invented the Cola flavored soft drink in 1886, Coca Cola (2017) and since then it has become a global leader in the soft drink industry in addition to other cola beverage producers. In recent years, the health conscious consumer has sought alternatives to sugary carbonated beverages such as Iced teas, juices, flavored waters, etc.
Due to over saturation of the market, this can potentially reduce profit and market share, Smith, J. (2012).Cola Competition & Maturity: The most popular brands and leaders in the carbonated beverage industry are Coca Cola and Pepsi Co. Under Coca Cola’s umbrella of popular brands is Sprite, Fanta and Diet coke just to name a few, Coca-Cola (2017). In addition, under the Pepsi brand, examples of direct competition to Coca Cola includes Diet Pepsi, Sierra Mist and Mountain Dew, Pepsi (2017). Coca Cola have both included healthier beverage items in their drink lineups, this is reflective of Cola’s Maturity stage and a trend toward healthier drinks.With obesity rising in children over the past decade, a factor blamed for the increasing statistics are beverages containing high fructose corn syrup.
It is also believed consumption of these products lead to diabetes and other health related debilitations as well, Pletcher, P. (2016). Due to public concerns over health risks associated with these types of beverages, companies such as Coca Cola and Pepsi Co, which have traditionally been producers of sodas, must now rely on production of beverages that are non carbonated to maintain market share and consumer appeal. (RF).
So long as Coca Cola and other carbonated beverage companies continue to produce health conscious options as consumers needs continue to evolve, they will remain relevant and profitable. Coca Cola Sales 2016, Bomey, N. (2017). Smartphone Apps Growth StageWhen mobile applications entered the marketplace, it entered what is known as the growth stage in the product lifecycle, with market entry comes competition. However, success in this stage of the product lifecycle can generate sales and profit. With Apple leading the way and Android devices following suit, an article from Bloomberg stated that after the launching of Apple App Store, the mobile app market value exceeded $1 billion in 2009, Macmillan, D. (2009).
Both Apple and Google platforms have capitalized and thrived off of the success of the app industry. Presently, the Googles Play store has largest library of mobile applications available, followed by Apple’s app store. Gary, S.
(2015). Pricing, Advertising, and Distribution Channels Different for the Two Brand Managers Cola: In the maturity stage, in order for Coca Cola to maximize profits they must consider modifying their product or market in order to adapt to the changing needs of the consumer over time. Since mature product nears the end of it’s life cycle, they must continue to develop new alternatives or variations since products in the maturity stage remain unchanged for extended periods of time and can result in the product or brand becoming stale. Variations could include new packaging, flavors, features or lower prices, coupon specials, as well as improved advertising, Hill B. (2017). New markets can also increase awareness and consumption.
Smartphone Apps: As competitors enter the market during the growth phase with very similar offerings. Brand Manager’s objective is to build brand preference and increase market share, Momoh O. (2010).
In this growth stage product quality is maintained with additional features and support services added. Pricing may be maintained as the brand enjoys a high demand with little competition. In turn, more channels are added as the demand increases. ConclusionA solid marketing strategy is required when introducing new products, building on current lines of product and adding line extensions. A marketing manager’s strategies may vary according to the stage of a product’s life cycle but when planning, a marketing/branding manager can only be as successful as a solid marketing strategy. ReferencesInside the App Economy. (2009, October 22).
Retrieved from https://www.bloomberg.com/news/articles/2009-10-22/inside-the-app-economy Coca-Cola History ? World of Coca-Cola. (n.d.). Retrieved from https://www.worldofcoca-cola.
com/about-us/coca-cola-history/ Google Play Store vs the Apple App Store: by the numbers (2015). (2015, April 20). Retrieved from https://www.androidauthority.
com/google-play-store-vs-the-apple-app-store-601836/ Smith, J. (2012) Coca-Cola Goes ?Prohealth?: Offers Low-Calorie and Healthier Beverage Appealing To Health Conscious Consumers. (2017, February 12). Retrieved from http://www.sciencetimes.
com/articles/8506/20170212/coca-cola-prohealth-products-fails-conquer-world-market.htm Official Site for PepsiCo Beverage Information | Our Brands. (n.d.). Retrieved from http://www.pepsicobeveragefacts.com/home/brands Brands: The Coca-Cola Company.
Retrieved from http://www.coca-colacompany.com/brands/the-coca-cola-company How Soda Impacts Diabetes Risk. (n.d.). Retrieved from https://www.
medicalnewstoday.com/articles/259604.php Bomey, N. (2017) Soda sales flat for Coke but other drinks on the rise. (2017, February 9).
Retrieved from https://www.usatoday.com/story/money/2017/02/09/coca-cola-fourth-quarter-earnings/97683348/ Momoh, O. (2010, August 10). Brand Management.
Retrieved from https://www.investopedia.com/terms/b/brand-management.asp Hill, B.
(2017) Ideas in the Maturity Stage of the Marketing Mix. (2017, November 21). Retrieved from http://smallbusiness.chron.com/ideas-maturity-stage-marketing-mix-65985.html